Substantially all of the Company’s inventory consisted of finished goods as of September 30, 2023 and December 31, 2022.


	September 30, 2023		December 31, 2022
Tooling and manufacturing equipment	$	2,632	$	2,731
Furniture and fixtures	639		639
Computer equipment	348		660
Software	106		106
Leasehold improvements	35		29
Total property and equipment	3,760		4,165
Less accumulated depreciation and amortization	(3,264)		(3,057)
Property and equipment, net	$	496	$	1,108

Depreciation and amortization expense on property and equipment was $146 and $332 for the three months ended September 30, 2023 and September 30, 2022, respectively. For the three months ended September 30, 2023 and September 30, 2022, the Company allocated $58 and $210, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment and software to cost of revenues.

Depreciation and amortization expense on property and equipment was $645 and $966 for the nine months ended September 30, 2023 and September 30, 2022, respectively. For the nine months ended September 30, 2023 and September 30, 2022, the Company allocated $388 and $608, respectively, of depreciation and amortization expense related to tooling and manufacturing equipment and software to cost of revenues.

Intangible assets were $2,219, net of accumulated amortization of $265 as of September 30, 2023 and $2,279, net of accumulated amortization of $206, as of December 31, 2022.

Capitalized software development costs were $1,873 on September 30, 2023 and December 31, 2022. The Company’s internally developed software capitalized within intangible assets on the balance sheet is still in development and not ready for general release. As such, the Company has not recognized any amortization for the three or nine months ended September 30, 2023 or 2022.

The Company did not recognize any impairment charges for intangible assets during the three or nine months ended September 30, 2023 or 2022.

On October 1, 2021, the Company received a Warning Letter, later corrected in an amendment to the letter dated October 5, 2021 (the “Warning Letter”), from the U.S. Food and Drug Administration (the “FDA”) regarding the Owlet Smart Sock. During the fourth quarter of 2021, the Company agreed with certain customers and retailers to accept returns of the Owlet Smart Sock and Owlet Monitor Duo.

Accrued and other expenses, among other things, included accrued sales returns of $1,224 and $6,756 as of September 30, 2023 and December 31, 2022, respectively. Accrued sales returns included $36 and $4,958 as of September 30, 2023 and December 31, 2022, respectively, for product returns related to the Warning Letter.


	For the Three Months Ended September 30,
	2023		2022
Accrued warranty, beginning of period	$	591	$	775
Provision for warranties issued during the period	47		157
Settlements of warranty claims during the period	(135)		(118)
Accrued warranty, end of period	$	503	$	814


	For the Nine Months Ended September 30,
	2023		2022
Accrued warranty, beginning of period	$	712	$	661
Provision for warranties issued during the period	163		550
Settlements of warranty claims during the period	(372)		(397)
Accrued warranty, end of period	$	503	$	814